What's Going on With Micron Stock? | MU Stock Deep Dive Part 1

Parkev highlights Micron's extraordinary financial achievements, noting that the company has reached operating margins above 80%, a level Parkev has never encountered in eight years of financial analysis. Parkev explains that Micron exceeded the upper end of its guidance for revenue, gross margins, and earnings per share, with data center revenue growing nearly fourfold. This growth is largely driven by a supply-constrained environment that has allowed Micron to implement triple-digit percentage price increases over the last 18 months.

Parkev observes that while the stock has already seen a massive run-up, management expects 2027 to be even stronger than 2026. Parkev notes that the industry is currently sold out for many components through 2027 and is beginning to see orders for 2028. This provides a significant buffer against fears of an AI bubble burst, as the supply-demand imbalance is projected to persist for several more years. Parkev also addresses the rise in operating expenses, explaining that a $1 billion increase is tied to performance-based compensation and necessary capital investments for future capacity.